Pacific Textiles (1382) H1 25/26 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2025 was HK$2,524.5 million, down 6.7% year-over-year due to a 10.5% drop in sales volume despite a 3.5% increase in average sales price.

• Profit attributable to equity holders fell 25.8% to HK$79.3 million, mainly due to reduced sales orders from U.S. tariff hikes and lower factory utilization.

• Gross profit margin decreased to 8.3% from 8.8% year-over-year; net profit margin was 3.1% versus 3.9% in the prior period.

• Interim dividend declared at HK$0.05 per share, compared to HK$0.07 last year.

Financial highlights

• Revenue: HK$2,524.5 million (down 6.7% year-over-year).

• Gross profit: HK$209.3 million (down from HK$239.4 million); gross margin 8.3%.

• Profit attributable to equity holders: HK$79.3 million (down from HK$106.9 million).

• EBITDA was HK$231.9 million, with an EBITDA margin of 9.2% (2024: 9.3%).

• Net debt position: HK$973.8 million (up from HK$679.8 million at 31 March 2025).

• Total assets: HK$5,622.1 million; equity attributable to shareholders: HK$2,909.5 million.

Outlook and guidance

• Sales orders rebounded after U.S. tariffs on Vietnam were reduced, with Vietnam factory utilization recovering to 80–90%.

• Management expects improved profitability in the second half of FY2025/26, supported by cost control, digitalization, and expanded production capacity.

• Ongoing capital investment planned for Vietnam facilities to drive long-term growth.

• External risks include geopolitical tensions, inflation, and economic slowdowns in key markets.